Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Applied Materials Inc., EBITDA calculation

US$ in millions

12 months ended:	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019	Oct 28, 2018
Net income	6,856)	6,525)	5,888)	3,619)	2,706)	3,313)
Add: Income tax expense	860)	1,074)	883)	547)	563)	1,381)
Earnings before tax (EBT)	7,716)	7,599)	6,771)	4,166)	3,269)	4,694)
Add: Interest expense	238)	228)	236)	240)	237)	234)
Earnings before interest and tax (EBIT)	7,954)	7,827)	7,007)	4,406)	3,506)	4,928)
Add: Depreciation and amortization	515)	444)	394)	376)	363)	457)
Earnings before interest, tax, depreciation and amortization (EBITDA)	8,469)	8,271)	7,401)	4,782)	3,869)	5,385)

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28).

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Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Applied Materials Inc. EBITDA increased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Applied Materials Inc., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	167,782)
Earnings before interest, tax, depreciation and amortization (EBITDA)	8,469)
Valuation Ratio
EV/EBITDA	19.81
Benchmarks
EV/EBITDA, Competitors¹
Advanced Micro Devices Inc.	61.72
Analog Devices Inc.	17.22
Broadcom Inc.	31.52
Intel Corp.	14.62
KLA Corp.	21.71
Lam Research Corp.	21.45
Micron Technology Inc.	52.62
NVIDIA Corp.	61.18
ON Semiconductor Corp.	9.31
Qualcomm Inc.	19.00
Texas Instruments Inc.	18.23
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment	46.68
EV/EBITDA, Industry
Information Technology	29.09

Based on: 10-K (reporting date: 2023-10-29).

¹ Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Enterprise Value to EBITDA Ratio, Historical

Applied Materials Inc., historical EV/EBITDA calculation, comparison to benchmarks

	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019	Oct 28, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	133,385)	91,283)	129,849)	80,447)	56,494)	33,594)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	8,469)	8,271)	7,401)	4,782)	3,869)	5,385)
Valuation Ratio
EV/EBITDA³	15.75	11.04	17.54	16.82	14.60	6.24
Benchmarks
EV/EBITDA, Competitors⁴
Advanced Micro Devices Inc.	65.81	22.63	34.19	62.10	82.59	—
Analog Devices Inc.	15.56	16.23	38.55	23.61	18.67	14.37
Broadcom Inc.	26.42	13.54	19.72	18.89	16.32	12.21
Intel Corp.	18.96	6.20	6.02	6.40	8.73	—
KLA Corp.	15.67	14.97	19.26	18.10	14.14	10.91
Lam Research Corp.	15.35	11.34	16.67	17.76	10.07	7.08
Micron Technology Inc.	32.38	3.26	6.05	6.46	3.90	2.41
NVIDIA Corp.	95.68	57.59	58.96	52.90	21.10	—
ON Semiconductor Corp.	10.57	11.65	14.40	20.27	11.13	—
Qualcomm Inc.	12.82	7.84	12.76	19.49	10.55	28.47
Texas Instruments Inc.	16.36	14.69	15.54	21.75	17.73	—
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment	25.99	14.44	15.49	14.76	11.56	—
EV/EBITDA, Industry
Information Technology	23.37	18.28	20.37	19.53	14.42	—

¹ See details »

² See details »

³ 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 133,385 ÷ 8,469 = 15.75

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	Applied Materials Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Applied Materials Inc. (NASDAQ:AMAT)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical